President Donald Trump says he will suspend the federal tax on gas to help Americans shoulder higher fuel prices caused by the Iran war.
Iran’s chokehold over the Strait of Hormuz has caused global oil prices to spike, rattling world markets.
The price for a barrel of Brent crude oil climbed 2.9% to $104.18 after President Donald Trump said the U.S.-Iran ceasefire was on “life support” after he rejected Iran's latest proposal to end their war. The rejection raises the stakes for Trump’s trip this week to China, where he could urge President Xi Jinping to pressure Iran into making concessions. Xi has leverage because China is the biggest buyer of Iran’s sanctioned crude oil.
The war has already sent the price for a barrel of Brent up from roughly $70 and delivered a blast of painful inflation through the global economy. That’s because it has shut the Strait of Hormuz and kept oil tankers stuck in the Persian Gulf instead of delivering crude to customers worldwide.
But the U.S. and Iran remain far apart on a host of issues. Trump has demanded a major rollback of Iran’s nuclear activities, while Iran is pushing for a more limited agreement that would reopen the strait and lift the blockade ahead of further negotiations.
Two regional officials told The Associated Press that Iran has offered to dilute part of its highly enriched uranium and transport the rest to a third country. Russia has previously offered to take it. The officials spoke on condition of anonymity to discuss the sensitive diplomacy.
Trump has demanded that the nuclear material be removed completely, and is unlikely to accept other Iranian proposals for the formalization of its control of the strait and for U.S. reparations.
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